Analysts: Orange Polska is again a cash cow. Dividend lower than capabilities
Analysts are reacting to the financial results and strategic plans of Orange Polska, noting that despite lower profits, the company is proposing a higher dividend for 2026.
Recent financial results from Orange Polska have shown a drop in net income for 2025, yet the company has increased its dividend proposal for the upcoming year. This move has caught the attention of analysts, especially considering the company's new medium-term financial goals for 2026 and projected cash flows through 2028. The telecommunications company, majority-controlled by the French Orange group, saw its stock rise significantly following the announcement of these results, indicating market optimism despite the dip in profits.
In Wednesday’s trading session, Orange Polska emerged as a notable performer on the WIG20 index, with its shares climbing over 5% after the preliminary financial results for 2025 were disclosed. Analysts are considering the implications of these moves, questioning how a company can propose a higher dividend while experiencing declining profits. The stock has now reached a price of 13 PLN, marking an increase of nearly 6% since last week, showcasing investor confidence in the strategic direction outlined by the company's management.
The rise in share price and the decision to increase dividends can indicate a strategy aimed at maintaining investor support, even amid challenging financial conditions. As the company navigates its financial landscape towards 2028, the focus will likely remain on its cash flow forecasts and investment expenditures. The outcomes of these strategies will significantly impact Orange Polska's market position and investor relationships in the coming years.